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WorksheetsAccounting 1 - Ch. 7 Review
Total questions: 15
Worksheet time: 5mins
Name
Class
Date
1.
The date on a monthly income statement prepared on November 30 is written as
a)
For Month Ended November 30, 20--
b)
November 30, 20--
c)
20--, November 30
d)
none of the other options
2.
The amount of net income calculated on an income statement is correct if
a)
it is the same as net income shown on the work sheet.
b)
debits equal credits.
c)
it is the same as the balance sheet.
3.
Preparing financial statements at the end of each fiscal period is what accounting concept?
a)
Adequate Disclosure
b)
Going Concern
c)
Objective Evidence
d)
Accounting Period Cycle
4.
The dollar amounts needed to prepare an income statement's revenue section is obtained from the
a)
Income Statement Debit column.
b)
the Income Statement Credit column.
c)
Balance Sheet Debit column.
d)
Balance Sheet credit column.
5.
A balance sheet reports a business's financial
a)
condition over a specific period of time.
b)
progress over a specific period of time.
c)
condition on a specific date.
d)
progress on a specific date.
6.
When preparing a balance sheet, the amount of owner's capital is obtained from
a)
the general ledger.
b)
the income statement.
c)
the work sheet's Balance Sheet Credit column.
d)
none of the other choices.
7.
The formula for calculating the net income component percentage is
a)
net income divided by total sales.
b)
total sales divided by total expenses.
c)
total sales minus total expenses.
8.
Information needed to prepare a balance sheet liabilities section is obtained from the
a)
Income Statement Debit column.
b)
Income Statement Credit column.
c)
Balance Sheet Debit column.
d)
Balance Sheet Credit column.
9.
Financial statements containing all necessary information to understand financial condition is
a)
Adequate Disclosure
b)
Going Concern
c)
Objective Evidence
d)
Accounting Period Cycle
10.
On an income statement, double lines across both amount columns indicate that debits=credits.
a)
True
b)
False
11.
The financial condition of a business refers to its financial strength.
a)
True
b)
False
12.
The O.E. section of a balance sheet may report different details depending on the business.
a)
True
b)
False
13.
An amount written in parentheses on a financial statement indicates an estimate.
a)
True
b)
False
14.
A balance sheet reports financial information over a specific period of time.
a)
True
b)
False
15.
When a business has 2 different source of revenue, 2 separate income statements are prepared.
a)
True
b)
False
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